Discover and read the best of Twitter Threads about #OptionsPricing
Most recents (3)
Don't create focus on return in trades.
3/n
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The God of #Options #Greeks is often disregarded and has no mercy, especially on #Options #expiration day.
A #Thread on #Gamma.
#OptionsGreeks
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A #Thread on #Gamma.
#OptionsGreeks
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The primary feature of #Options is their non-linear payout.
Most traders understand that #OptionsPricing is dependent on the price of the underlying, but the response is non-linear. #Gamma is the variable that describes this non-linearity.
#OptionsGreeks
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Most traders understand that #OptionsPricing is dependent on the price of the underlying, but the response is non-linear. #Gamma is the variable that describes this non-linearity.
#OptionsGreeks
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Loosely, if #Delta is the speed of the #Options position, #Gamma is the acceleration.
#OptionsGreeks
3/n
#OptionsGreeks
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A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
A lot of chatter on my TL about the #edge in #OptionsTrading, specifically #OptionSelling.
A lot of good information but some mis-information being spread as well.
A #thread.
2/n
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
First off, #OptionSelling by itself is NOT an edge.
Simply by selling an instrument that decays in value over time, doesn't give one an edge towards profit. It is accompanied by short gamma and rising #volatility working "against" you.
#OptionsTrading
3/n
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
The #volatility #edge or premium expresses itself when the underlying moves "less" than the move that is priced in the options.
#OptionsTrading
